Gov't blows $2m on non-existing Sky Train project — Auditor General's report

The 2021 Auditor General's report has revealed that the government spent some $2 million on the Sky Train project.

Sky train

The Auditor General said after an assessment of the Ghana Infrastructure Investment Fund (GIIF) risk management, it revealed that the policy is still in the draft stage.

The report said "The feasibility studies which will better inform the project economics and required approvals from the Cabinet of Ghana and the Parliament of Ghana are still not conclusive."

Africa Investor Holdings Limited incorporated a Special Purpose Vehicle (SPV) in 2018 in Mauritius for the purposes of establishing Ghana Sky Train Limited to develop the Accra Sky Train Project through a concession on design, build, finance, and operate arrangement.

In 2019, the government of Ghana and (Ai) Sky Train Consortium of South Africa signed the much anticipated Accra Sky Train project, which is a fully automated, highly efficient, and extremely cost-effective public mass transit system that will use air propulsion technology to drive lightweight, high passenger volume vehicles.

But the Minister for Railway Development, John Peter Amewu, said the government would not be able to construct any sky train in the country.

"The sky train that we are talking about is the one that is going to run on columns in the sky like the ones you see in Dubai but no agreement has been signed.

"It is not possible to be done now. I don't see any sky train being done in the next 3-4 years. There is not going to be any Sky train in the country. It is not possible," Amewu stated.

However, the Auditor General's report indicated that not much has been seen in terms of feasibility studies regarding the project.

It said it has already advised the management of the Fund to take steps towards "finalization and approval of the risk management policy by the Governing Board for implementation."

Though the Auditor General noted that feasibility studies are still ongoing, the report is apprehensive that the investment in the SPV might not be recovered if the Accra Sky Train Project is unable to secure the licencing as well as Executive and Parliamentary approval.

The report urged management to "continue to monitor the feasibility of the investment in the SPV and make the necessary provisions based on the outcome of the feasibility studies."

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